DENVER, Aug. 11 /CNW/ -- Kodiak Oil & Gas Corp.
(Amex: KOG; TSX Venture: KOG), an oil and gas exploration and production
company with assets in the Green River and Williston Basins, today reported
financial and operating results for the first half of 2006. Financial tables
for the first half and second quarter 2006 are included at the end of this
news release.
First-half 2006
The Company reported a net loss for the six months ended June 30, 2006 of
$1,014,000 or $0.02 per share compared with a net loss of $816,000 or $0.02
per share for the same period in 2005. Included in the 2006 net loss was a
charge against income of $1,121,000 for stock-based compensation for options
issued to directors and employees, while there was no such expense in 2005.
All per-share amounts are presented on a fully diluted basis. Net income
before depreciation, depletion and amortization, gain on foreign currency
exchange, and stock-based compensation charges was $619,000 for the six-month
period ended June 30, 2006 as compared to loss of $630,000 the same period
ending June 30, 2005. Oil and gas sales for the six-month period were
$1,771,000 versus $14,000 in the same period in 2006. Total revenues were
$2,138,000 versus $45,000 in the same period a year ago. The rise in total
revenues is attributed to greater oil and gas production volumes and higher
realized commodity prices received.
Gas production volumes were 94,139 per thousand cubic feet (Mcf) for the
six-month period ended June 30, 2006, compared to 5,877 Mcf for the prior
period in 2005. Oil production volumes were 23,982 barrels for the six-month
period ended June 30, 2006, compared to no oil sales during the same period in
2005. For the first half of 2006 Kodiak produced 39,672 barrels of oil
equivalent using a conversion rate of 6 Mcf gas to each barrel of oil.
Gas price realizations increased 21% to $6.55 per Mcf for the six-month
period ended June 30, 2006 compared to $5.43 per Mcf the same period in 2005.
Oil price realizations were $56.97 per barrel for the period ended June 30,
2006. Kodiak's production is currently unhedged.
As of June 30, 2006, Kodiak had working capital of $24,983,000 with no
long-term debt. During the six-month period ended June 30, 2006, the Company
invested $16,208,000 for exploration and development of its leasehold,
including $6,900,000 for the acquisition of mineral leaseholds in the
Company's Vermillion Basin projects in southwest Wyoming. Kodiak anticipates
capital of expenditures of approximately $16 million over the remainder of
2006 of which $10 million will be invested in Wyoming, primarily in the
Vermillion Basin, and $6 million in the Williston Basin.
During the first half of 2006, Kodiak conducted initial completion
operations on three gross wells (1.6 net). At June 30, 2006, Kodiak operated
eight gross wells with four additional wells awaiting completion activities.
Management Comments
Commenting on the first-half results, Lynn Peterson, Kodiak's President
and CEO said: "Because we are beginning to ramp up activity and corresponding
production growth, we have presented results in the six-month format.
Comparisons to the year-ago period are skewed by the capital we have raised
and the investment in developing our properties. We will present quarterly
comparisons as they become a more meaningful way to assess our performance and
expected growth. For the remainder of 2006, we expect to spud our first
Baxter Shale test, the North Trail State #4-36 in the Vermillion Basin in
Wyoming. We also just put our first Bakken well in North Dakota on production
during the last week of July and we have set intermediate casing to 11,200
feet on our second well. Our third quarter results will reflect the oil
production from this play."
About Kodiak Oil & Gas Corp.
Kodiak Oil & Gas, headquartered in Denver, is an independent energy
exploration and development company focused on exploring, developing and
producing oil and natural gas in the Williston and Green River Basins in the
U.S. Rocky Mountains. For further information, please visit www.kodiakog.com.
The common shares of the Company are listed for trading on the American Stock
Exchange and the TSX Venture Exchange under the symbol "KOG."
Forward-Looking Statements
This press release includes statements that may constitute
"forward-looking" statements, usually containing the words "believe,"
"estimate," "project," "expect" or similar expressions. These statements are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements inherently involve
risks and uncertainties that could cause actual results to differ materially
from the forward-looking statements. Forward looking statements are
statements that are not historical facts and are generally, but not always,
identified by the words "expects," "plans," "anticipates," "believes,"
"intends," "estimates," 'projects," "potential" and similar expressions, or
that events or conditions "will," "would," "may," "could" or "should" occur.
Information inferred from the interpretation of drilling results may also be
deemed to be forward looking statements, as it constitutes a prediction of
what might be found to be present when and if a well is actually developed.
Forward-looking statements in this document include statements regarding the
Company's exploration, drilling and development plans, the Company's
expectations regarding the timing and success of such programs, and the
Company's expectations regarding production from its Williston property.
Factors that could cause or contribute to such differences include, but are
not limited to, fluctuations in the prices of oil and gas, uncertainties
inherent in estimating quantities of oil and gas reserves and projecting
future rates of production and timing of development activities, competition,
operating risks, acquisition risks, liquidity and capital requirements, the
effects of governmental regulation, adverse changes in the market for the
Company's oil and gas production, dependence upon third-party vendors, and
other risks detailed in the Company's periodic report filings with the
Securities and Exchange Commission.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information, please contact:
Mr. Lynn A. Peterson, President, Kodiak Oil & Gas Corp., +1-303-592-8075
Mr. David Charles, EnerCom, Inc. +1-303-296-8834
Ms. Heather Colpitts, Associate Account Manager, CHF Investor Relations,
+1-416-868-1079 x.223
[Financial and Operational Tables Accompany this News Release]
The notes accompanying the financial statements are an integral part of the
consolidated financial statements and can be found in Kodiak's filing on
Form 10-Q dated August 11, 2006.
KODIAK OIL & GAS CORP.
BALANCE SHEET (UNAUDITED)
June 30, December 31,
ASSETS 2006 2005
Current assets:
Cash and cash equivalents $27,494,962 $7,285,548
Accounts receivable
Trade 727,670 447,981
Accrued Sales 338,059 226,406
Prepaid expenses and other 179,276 30,631
Total Current Assets 28,739,967 7,990,566
Property and equipment (full cost method),
at cost:
Proved oil and gas properties 19,222,253 11,277,307
Unproved oil and gas properties 14,571,338 6,307,903
Less-accumulated depletion, depreciation
and amortization (969,105) (121,941)
32,824,486 17,463,269
Other property and equipment, net of
accumulated depreciation of $79,479 in
2006 and $47,525 in 2005 166,388 183,481
Restricted Investment 228,000 153,000
Total Assets $61,958,841 $25,790,316
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $3,757,340 $4,411,572
Noncurrent liabilities:
Asset retirement obligation 137,760 69,073
Total Liabilities 3,895,100 4,480,645
Commitments and Contingencies
Stockholders' equity:
Common stock, $0.01 par value:
authorized - 100,000,000
Issued: 74,886,426 shares in 2006 and
54,547,158 in 2005 748,864 545,472
Additional paid in capital 64,158,128 26,593,826
Accumulated deficit (6,843,251) (5,829,627)
Total Stockholders' Equity 58,063,741 21,309,671
Total Liabilities and Stockholders' Equity $61,958,841 $25,790,316
KODIAK OIL & GAS CORP.
STATEMENT OF OPERATIONS (UNAUDITED)
Three months ended June 30, Six months ended June 30,
2006 2005 2006 2005
Revenues:
Gas production $172,914 $13,545 $404,480 $13,545
Oil production 689,185 -- 1,366,198 --
Interest 263,167 22,677 366,839 31,325
Total revenue 1,125,266 36,222 2,137,517 44,870
Cost and expenses:
Oil and gas
production 236,746 63,633 349,660 74,347
Depletion,
depreciation,
amortization
and abandonment
liability
accretion 491,674 7,216 879,190 13,732
General and
administrative 1,825,632 323,594 2,290,435 601,472
(Gain) /loss on
currency
exchange (420,676) 130,655 (368,143) 171,278
Total costs
and expenses 2,133,376 525,098 3,151,141 860,829
Net loss for the
period $(1,008,110) $(488,876) $(1,013,624) $(815,959)
Basic & diluted
weighted-average
common shares
outstanding 74,398,514 44,810,540 67,045,923 44,810,540
Basic & diluted
net loss per
common share $(0.01) $(0.01) $(0.02) $(0.02)
Product Volumes and Prices
Six Months Ended June 30,
2006 2005
Volume Price Volume Price
Gas (Mcf) 94,139 $6.55 5,877 $5.43
Oil (Bbls) 23,982 $56.97 -- $--
Three Months Ended June 30,
2006 2005
Volume Price Volume Price
Gas (Mcf) 25,760 $5.53 5,877 $5.43
Oil (Bbls) 10,989 $62.72 -- $--
